REED E HUNDT, CHAIRMAN
FEDERAL COMMUNICATIONS COMMISSION
SPEECH TO THE AMERICAN WOMEN IN RADIO AND
TELEVISION ("AWRT")
POWER BREAKFAST
JUNE 10, 1997
(as prepared for delivery)
WOMEN, COMMUNICATIONS AND THE PUBLIC
INTEREST
Good morning. Thanks for inviting me to be
here today. Special thanks to American Women in Radio and
Television (AWRT) Washington D.C. Chapter President Ellen
Schned, a former FCC attorney, Power Breakfast Chairperson
Marlene Colucci, and to AWRT's Executive Director, Terri
Dickerson. AWRT has been a thoughtful participant in FCC
rulemakings about auctions, elimination of market entry barriers
for small, women and minority-owned business, equal
employment opportunity and many other topics.
The past three and a half years have witnessed
explosive growth in the communications industry. Growth in the
communications sector is 65% higher than in the overall
economy. Investment in this sector has increased by 11% over
1996. Wireless investment has increased more than 250% since
1993, and over the next ten years will total more than $50
billion. It is the largest single investment in a new, non-military
technology in American history.
I am proud to say that women have been in the
vanguard of that growth. Even as judicial decisions made it
dramatically harder to pursue directly the statutory goal of
encouraging ownership of spectrum licenses by women and
minorities, we had extraordinary successes. Women won 495
licenses at the FCC auctions, and minorities won 465 licenses.
Small businesses won over 2,300 licenses through FCC auctions.
Altogether, this is an FCC record.
AWRT member Shelly Spencer is one of the
owners of these new licenses. Shelly is a lawyer turned
entrepreneur, and a consistent advocate for women's full
participation and involvement. We wish Shelly and all of the
new wireless companies the best.
On Monday we had a forum and demonstration at
the FCC on opportunities in unlicensed spectrum. As the name
indicates, no FCC license is required to operate in certain parts of
the spectrum, only compliance with certain interference standards
and the most basic of FCC approvals. Entrepreneurs are
developing wireless internet systems connected by base stations
on street lights, wireless phone systems nurses can use to keep in
touch as they visit patients throughout the hospital, and many
other applications. We applaud their efforts and the many
innovations to come.
As we introduce competition in more sectors,
not only will there be opportunities for licensees and
"unlicensees," but also for those who work with them. Many
AWRT members are lawyers, consultants and advertising
representatives who will be in increasing demand as new
communications industries develop. Opportunities will also
increase for engineers, people who can integrate technologies,
and people who create tools to navigate through the increasing
amount of information generated by our society. The FCC's
proposed rules to promote closed captioning will create a demand
for talented stenographers who can almost instantaneously
translate speech into the written word. When I was a lawyer in
private practice, I met many court reporters whose skills, speed
and accuracy in taking down conversations amazed me. Soon,
they will have a new market. Companies need people to work
with local governments to secure sites for towers for new
wireless services. Companies even need people to represent them
before the FCC in rulemakings.
Cathy Sandoval, Director of the FCC's Office of
Communications Business Opportunities is charged with
increasing opportunities for small, women and minority-owned
businesses in the communications industry. My senior legal
advisor, Jackie Chorney, was one of the key architects of the
Commission's spectrum policy. Gretchen Rubin advises me on
broadcasting matters. I encourage you to get to know Cathy,
Jackie and Gretchen, and the many other dedicated public
servants at the FCC.
The entire FCC staff has worked at an incredible
pace during the past three and a half years. We have held the
largest auctions in the world, implemented the
Telecommunications Act of 1996, licensed new technologies, and
more. And there is still more work to be done. I receive e-mails
sent by FCC staffers at 1:00 a.m. and 5:00 a.m. They have
worked well into the night, during long busy days and on
weekends to complete the rulemakings that will create
competition and opportunity. Whenever I step away from my
office for a couple of hours to give a speech, I return to find 75
or more e-mails in my computer. I'm very proud of everyone at
the FCC and at what we have accomplished for the American
people.
When I first came to the FCC in 1993, a reporter
told me that there were only 75 people who mattered in
Washington. He told me that I was never going to get anywhere
if I didn't please them. He didn't tell me exactly who those 75
people were, except that they included some of the high-paid
lobbyists who regularly visited the FCC on behalf of the biggest
communications companies. Most of those lobbyists are men.
But that's not the only reason the reporter was wrong.
The FCC's decisions affect millions of people.
Our decisions promote competition and lower rates for mobile
wireless services, provide resources to connect classrooms so that
millions of American children will be able to access the
information highway, spur new educational programming for
children on television, and make the telephone network more
accessible to millions of Americans. All Americans matter when
deciding these issues. That's why we've made the
communications debate so public. The FCC web page has
received over 58 million hits on the internet. The public cares
deeply about these issues and we have worked to ensure that they
are part of the debate.
When I spoke to the AWRT convention in
Minneapolis three years ago, I commented on the absence of
women on the boards of directors of communications trade
associations. The U.S. Telephone Association added one woman
to their board during my tenure; there are now 3 women directors
on the 46-member USTA board instead of two. The Cellular
Telecommunications Industry Association still has no women on
their Board of Directors. The National Association of
Broadcasters remained constant at 5 women out of 63 board
members. The Wireless Cable Association has no women on
their Board of Directors.
I know many AWRT members and other women
who would serve these boards well. I again wish to express my
concerns about the lack of progress in these associations, and I
hope AWRT does the same.
The paucity of Board representation runs counter
to the national trend of growth in women-owned businesses.
In 1996, there were nearly 8 million women-
owned businesses in the U.S, generating nearly $2.3 trillion in
sales.
The number of firms owned by women grew
78% between 1987 and 1996, nearly twice the rate of increase of
all U.S. firms (47%).
Women-owned businesses employ one out of
every four U.S. company workers--a total of 18.5 million
employees.
Communications/transportation, construction,
wholesale trade, agribusiness, and manufacturing were the top
growth industries for women-owned businesses between 1987-96.
During that nine-year period, the number of firms owned by
women in communications/transportation increased by 140%.
With the explosive overall growth in the communications
industry, we expect to see that trend continue.
The National Foundation for Women Business
Owners also found that women entrepreneurs use
communications and information systems to help their businesses
succeed.
Half of women business owners plan to increase
their investments in information technology in the coming year.
13% expect to spend $15,000 or more on computer systems this
year; 60% will spend up to $5,000 on information technology.
One-third of women-owned businesses subscribe
to an online service; and 65% expect to become a regular user
within five years.
Women businesses owners get their information
primarily from each other about technology purchases. NFWBO
found that women are more likely than men to rely on fellow
business owners for information and advice. Women are less
likely than men to seek technology information from computer-
related publications, general interest magazines, business
association meetings, and the Internet.
Women must be leaders not only in using
technology, but in making sure that our public airwaves are used
in the public interest.
As a parent and Chairman of the FCC, I'm
convinced that families, children and communities are at the heart
of the communications revolution. That revolution promises the
American Dream of opportunity and prosperity for all. The FCC
has pursued these lofty goals by bringing competition to every
sector of the communications market, and working to ensure that
the public benefits from communications technologies.
Competitive markets produce innovation,
consumer choice, lower prices and better services. Deregulatory,
pro-competitive policies have resulted in billions of dollars in
investment and the creation of millions of new jobs. However,
we must make sure the markets serve the interests of families,
children and communities. When they do not, government
should intervene to promote public needs.
Last week the Reverend Jesse Jackson and I met
to discuss how we could work together to promote the public
interest, diversity and opportunity in the communications
industry. We discussed our mutual concern about the
mergermania sweeping the broadcasting industry. As the FCC
looks at proposals to consolidate more stations within the power
of one owner in a market, we must remember that the public
interest standard still prevails. When reviewing deals, we must
ask whether they serve the public interest. That interest includes
promoting diversity of voices and viewpoints over the airwaves.
I know you will join us in examining whether consolidation
serves those primary goals, and in developing guidelines to
ensure that stations are owned and operated in the public interest.
The Minority Media and Telecommunications
Council estimates that since the passage of the
Telecommunications Act of 1996, minority ownership in
broadcasting has declined by 15%.
The Commission is gathering data on these trends
through its study of barriers to market entry for minorities and
women. Last month, the FCC adopted a report on market entry
barriers for small businesses. The Commission recognized a
need to gather additional evidence on the unique barriers women
and minorities face. We are about to begin that study and will
need your support. We need to hear about your experiences in
breaking into the business and fighting the glass ceiling so we can
work together to shatter those barriers.
We also look for women to have a strong voice
in the transition to digital television. With DTV, full-power
broadcasters doubled their spectrum and won, for now, the
exclusive opportunity to develop the DTV franchise.
Vice-President Al Gore will head a commission
that will look into digital television and broadcasters' obligations
to the public interest. Through this process, AWRT has an
opportunity to ensure that DTV licensees operate in the public
interest. This includes increasing opportunities for women and
minorities, improving programming for children, and serving all
of us better.
I am also concerned about proposals in Congress
that would essentially renege on the commitment to give back the
spectrum loaned to broadcasters in exchange for their new digital
channels. Some Congressmen have proposed that the FCC
should grant extensions of the deadline for returning analog
spectrum channels if "more than 5% of households in a market
continue to rely exclusively on over-the-air analog TV signals."
This would result in an indefinite extension of the license to
existing broadcasters.
As stated in the Commission's order on digital
television, the target date for the transition from analog to digital
television is 2006. If broadcasters promote DTV, the great
majority of Americans will have converted to digital by buying
set top boxes, digital cable, digital satellite, digital tv, or personal
computers set up to receive DTV. As the deadline approaches,
broadcasters would have an incentive to distribute the equipment
to keep their audience share, and thus their advertising revenues.
So, penetration levels increase.
But if 5% of the audience doesn't have the
capacity to receive the new signal, then broadcasters can keep
both channels under proposed legislation. Where does this
number come from? Almost 5 percent of the country doesn't
have active telephone service. This is regarded as a small
percentage that does not drive our telephone policies, though we
continue to make efforts to reduce the gap. More than 5% of the
country probably thinks there is no such thing as "Must See TV."
Why should that growing block of silence lovers drive TV
policy?
The American public was promised that it would
get the spectrum back for new, flexible uses. The digital
spectrum, worth millions of dollars in potential advertising and
other revenues, was given to existing broadcasters for free, as a
loan in exchange for the analog spectrum. When the analog
licenses are returned, we can create new opportunities for
women, minorities, small businesses, new programmers and new
would-be networks, to acquire spectrum for any use. We must
ensure that promise is kept to create fair opportunities for all
Americans.
As the Commission discussed in the DTV order,
we are developing a proposal to make spectrum available on
Channels 60-69 for public safety use, and to businesses for
flexible use. Those uses could include broadcasting, wireless,
and fixed service uses. We are also considering ways to
encourage women and minority participation in those new
services. Bob Johnson, the entrepreneur who developed the
Black Entertainment Television cable network, has spoken up
about how important this spectrum is to the minority community,
and to creating new opportunities for programming which
addresses that community's needs.
Women also need to speak up about the
importance of this opportunity to women. With ownership comes
control. Bonnie Erbe's company now owns "To the Contrary," a
thoughtful talk-show where women commentators actually listen
to each other as they discuss important issues of the day. We
could all learn something from watching that show. We need to
get the analog licenses back to have opportunities to sell the
spectrum to new entrants, including women and minorities.
Liquor advertisements are another issue looming
large on television. President Clinton, 240 public interest
organizations, thirteen states and Puerto Rico, and many others
have asked the FCC to look seriously into the question of
whether hard liquor ads on broadcast TV should be allowed,
prohibited, or permitted on shows very late at night when
comparatively few young children are in the audience.
The number of hard liquor ads during prime time
is troubling, and the potential for harmful impact on young
people is real indeed. Last week the Wall Street Journal reported
that liquor companies and their advertising agencies are toasting
my departure by "laying the groundwork to expand the nation's
current trickle of TV ads for spirits."
The average American teenager watches fifty
hours of television each week. That's more time than these
teenagers spend in school.
The courts have consistently held that because of
broadcasting's accessibility and pervasiveness, the broadcast
medium receives more limited first amendment protection than
other media. And, in Anheuser-Busch, Inc. v. Schmoke, the
Fourth Circuit said a city could ban billboard advertising of
booze where kids are expected to walk to school or play. The
law clearly recognizes that liquor ads should not be treated like
Pizza Hut or Nike ads.
Within two weeks we plan to issue a Notice of
Inquiry to launch an open and public debate about the effects of
liquor ads on kids. We know that the liquor industry will file
comments in that proceeding. This is also a critical issue for
women. We need to hear your voices about this issue.
Some have suggested that the FCC has no
business taking a look at liquor ads. But one of the chief
purposes of the FCC is to ensure that the public airwaves are
used in the public interest. How can we justify turning a blind
eye to this new use of the public airwaves? Just because the
questions are tough doesn't mean that we should slough off our
responsibility onto other governmental entities. The President,
dozens of Congressmen, numerous states, and over 240 public
interest groups have called on us, the FCC, to act. We can't just
decide that we don't want to take the trouble, or take the heat,
and ignore this new use of the airwaves.
Public Service Announcements are also a matter
of serious concern at the Commission.
PSAs have entered our everyday language. We
know that "A mind is a terrible thing to waste" and that "Friends
don't let friends drive drunk." AWRT produced wonderful
public service announcements on stopping sexual harassment in
the workplace. I am concerned, however, that the decreasing
time allotted to PSA's would mean that AWRT couldn't air those
national PSA's today.
The statistics I've seen show that the amount of
time broadcasters spend promoting their own shows is rising, and
the time broadcasters devote to PSA's is shrinking. Statistics
provided by the American Association of Advertising Agencies
and the Association of National Advertisers in their 1995
"Television Commercial Monitoring Report" indicate that PSA's
occupy a small fraction of available prime-time hours. For every
minute of PSA's, broadcasters run 146 minutes of commercials,
and 58 minutes of self-promotional ads. In other words, for
every minute of time used for a non-commercial purpose
(PSA's), broadcasters use 204 minutes for commercial puroses
(commercials and self-promotions). Meanwhile, network self-
promotion increased from 3:18 minutes per hour in May 1993 to
4:21 minutes per hour in November 1995. At the same time, the
average time for networks PSA's is startlingly low at 5 seconds
per hour -- down from 12 seconds three years ago.
I'm focusing on prime-time because that's where
the eyeballs are. Many stations do a great job outside of prime
time. But the best opportunity to reach people, and to serve the
public interest, is when most of us are watching.
Therefore, I hope that you will speak up about
the importance of PSAs, and ensure that broadcasting serves the
public interest.
Finally, we have an unprecedented opportunity to
bring communications into the classroom to improve education
and stir the imagination of children across the land. I am very
proud of how we have served the public interest in establishing,
pursuant to the Telecommunications Act of 1996, a $2.25 billion
universal service fund to bring the information revolution to
schools and libraries.
When I was a teacher, my classroom had no
maps. We didn't have enough books either. Like most teachers
at the time, my fingers were stained purple from making
mimeographs so the students would have materials to study.
The universal service fund will help put maps of the world at the
fingertips of every child. It will put the Library of Congress
within arm's reach. Students can have tremendous resources
within their grasp.
The information age in the classroom will
prepare children for the information revolution that women
business owners are using to compete and succeed in today's
marketplace. It will help children become the entrepreneurs,
scientists, engineers and artists who will develop products and
services that will create a new, previously unimaginable future.
Many of you have told me what this fund will
mean for your children, and all the children of America. I look
forward to seeing young girls accessing AWRT's web page in the
classroom, learning about opportunities to be a broadcaster,
executive, lawyer or business leader in the communications
industry. We look forward to hearing from you about how this
fund benefits women and children.
There is a world of opportunity in the
communications industry. That industry is also creating more
opportunity in every sector of our society: in the schools; in
health clinics and libraries; for telecommuters who can spend
more time with their children while working on challenging and
rewarding jobs; for businesses; for our country and our world. I
look forward to AWRT and its members defining those new
opportunities.